The Financing.....IT'S A GOOD DEAL. I DON'T SEE ANY DOWNSIDE
IF AS A SHAREHOLDER, YOU THINK THE COMPANY HAS THE GOODS..... AND YOU BELIEVE THEY WILL SOON BE WRITING CONTRACTS......THEN BY DEFAULT YOU BELIEVE THE SP WILL INCREASE, RIGHT?
THE DEAL
THEY GET $17,500,000 NOW!
INTEREST (12%) AMOUNTS TO $2,100,000 ANNUALLY PAYABLE SEMI ANNUALLY IN ARREARS AND COMPANY CAN PAY INTEREST IN SHARES INSTEAD OF CASH AT ITS OPTION.
COMPANY CAN REDEEM DEBENTURE (WHAT HASN'T BEEN CONVERTED BY THEN) ANY TIME AFTER DEC 31 2024, FOR (5% over face value) plus unpaid interest.(ONLY ON THAT WHICH HAS NOT BEEN CONVERTED).
OF COURSE THEY HAVE SECURITY ON IP. BUT WHO CARES!
THAT IS A MEANINGLESS CYA COVENANT THAT IS STANDARD WHERE DEBENTURES ARE CONCERNED. THAT TOO EVAPORATES OVER TIME AS CONVERSIONS TO SHARES OCCURS.
ONCE THE SP HITS $4.80 FOR 20 CONSECUTIVE DAYS, COMPANY CAN FORCE WARRANT CONVERSION.
AND IF ALL GOES ACCORDING TO PLAN..... LESS THAN 7.3 MILLION SHARES ISSUED IN THE BARGAIN.
ANOTHER SIDE BENEFIT?
THEY NOW HAVE CASH THAT ENABLES THEM TO CONTINUE TO NEGOTIATE WITH STRATEGIC PARTNERS FROM A POSITION OF FINANCIAL STRENGTH.
AND ACCORDING TO SUE, THERE ARE A NUMBER OF THEM AT THE DOOR.
JUST AN OPINION!
GLTA